To estimate Investigator Resources' stock price if silver hits $100 per ounce, let's consider the following factors based on the data provided:
### Key Inputs:
- Annual silver production: 4 million ounces per year.
- AISC (All-In Sustaining Cost): $13 per ounce.
- Silver price assumption: $100 per ounce.
### Free Cash Flow (FCF) Estimate:
1. Revenue at $100 silver:
\[
\text{Revenue} = 4,000,000 \, \text{oz} \times 100 \, \text{USD/oz} = 400,000,000 \, \text{USD/year}
\]
2. Operating costs:
\[
\text{Operating Costs} = 4,000,000 \, \text{oz} \times 13 \, \text{USD/oz} = 52,000,000 \, \text{USD/year}
\]
3. Free Cash Flow (FCF):
\[
\text{FCF} = \text{Revenue} - \text{Operating Costs} = 400,000,000 - 52,000,000 = 348,000,000 \, \text{USD/year}
\]
### Valuation Multiple:
Assuming a conservative 10x FCF multiple, the total market capitalization could be:
\[
\text{Market Cap} = 348,000,000 \times 10 = 3.48 \, \text{billion USD}
\]
### Stock Price Estimate:
- Shares Outstanding: 1.9 billion shares.
- Estimated stock price:
\[
\text{Stock Price} = \frac{3,480,000,000}{1,900,000,000} = 1.83 \, \text{USD per share}
\]
### Conclusion:
If silver hits $100 per ounce, Investigator Resources could potentially have a stock price around $1.83 USD per share, assuming they meet production targets, extend mine life, and no further significant dilution occurs.
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